50 blockchain firms enter new index on Shenzhen Stock Exchange

50 blockchain firms enter new index on Shenzhen Stock Exchange

  • Ali Raza
  • 25th December 2019, 11:48
  • China's Shenzhen Stock Exchange recently rolled out a new index, filled with blockchain companies.
  • The index contains 50 firms whose stock performance is now being tracked, and in which Chinese investors can choose to invest.
  • The move represents China's newest effort to push blockchain adoption forward, and expand its use.

Blockchain technology continues to gain respect and spread more and more throughout the business world. An obvious proof of its advancement and development comes from the fact that as many as 50 blockchain-based firms recently emerged in a new index on the Shenzhen Stock Exchange.

According to new reports, the index is called Blockchain 50 Index, and it allows investors to invest in the index and get exposure to the firms based on emerging tech. The index is currently tracking the performance of some rather large firms, including S.F. Holding, Midea Group, Ping An Bank, Visual China Group, and others.

According to the announcement, it was released by Shenzhen Stock Exchange, in collaboration with its own subsidiary, Shenzhen Securities Information. The announcement goes on to say that the listed firms are involved in all streams of the blockchain industry, going from various services, technology, hardware, and more.

All 50 firms were carefully selected based on their average daily market value over the course of the past six months. Further, the entire index is capitalization-weighted. In other words, the shares were listed in accordance with their total market cap.

China keeps pushing blockchain adoption

The arrival of the blockchain was sudden, but it did not come as a surprise. Ever since China’s president, Xi Jinping, praised blockchain in his speech a few months ago, the country has been making headlines thanks to its effort to push blockchain adoption.

Countless private players started working on the development and improvement of blockchain, but also on its different products and use cases. Of course, China’s new fascination with blockchain does not include cryptocurrencies.

Now, while this is a pretty important move for the future of blockchain in China, it is worth remembering that the US-based NASDAQ has been tracking crypto and blockchain stocks for much longer. Still, China continues to push the blockchain in hopes of taking the lead, with its foreign exchange regulator’s official recently revealing plans to expand its blockchain-based cross-border financing pilot.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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